Owning a small business involves much more than coming up with and implementing a business idea. Small business owners quickly learn that a huge part of their role as the owner of a business means learning how to take care of the financials. Here are several tips for small business owners who want to learn the best practices for managing their business’ finances:

1) Bookkeeping

To the dismay of many business owners, the ancient art of bookkeeping isn’t going anywhere. Fortunately, bookkeeping has become much easier. Bookkeeping programs can make the process much easier, but there are still certain fundamental rules that business owners must take into account. Firstly, business owners must always keep a record of all of the invoices processed by their business as well as the expenses they have incurred, such as raw materials, salaries, and operating expenses. While there is no solid rule for how to keep track of earnings and expenses, what matters most is that you keep track of your finances in a consistent fashion and that everything is written down. This is arguably the most important part of owning a small business.

2) Don’t Over-Exaggerate Your Earnings

When working with investors, banks, or other financial lenders, one of the biggest mistakes you can make is to exaggerate your business’ earnings. These lenders need to know how likely you are to repay the money they have lent you when making their decision about whether or not to lend it in the first place. Lying or exaggerating about your earnings will only harm you and the lender in the long run.

3) Make Sure All Of Your Funding is Backed by a Legal Contract

Regardless of where you are going to receive funding, you need to ensure that the terms of your financial agreements are written down on a contract. Unfortunately, things can become troublesome during the repayment process and it is therefore urgent that you and your lender lay out terms in the beginning that you must adhere to later on. This keeps both sides accountable and also ensures that both sides know exactly what they are getting into before the money starts circulating.

4) Cash Flow

A successful small business always maintains a sufficient amount of cash on hand to take care of daily operations and unexpected expenses. However, many businesses that have been successful in receiving funding find that the money they are lent covers already-existing expenses but doesn’t quite leave enough cash left over to keep on hand. This is why small business owners are familiar with the feeling of being stuck somewhere between outstanding invoices and bills that are past-due. One option for small business owners is to use a merchant cash advance. These types of business cash advances can provide small businesses with additional cash flow to meet these expenses or to grow their business, and they are repaid through future credit card receivables. This is an important option to consider for many small business owners who have been denied other forms of funding.

5) When to Process Credit Cards

The short answer: Now! Being cash-only is extremely inconvenient for most customers. While setting up a credit card processing system can be costly, your customers may find it more convenient to go to your competitor’s business once they learn that your business doesn’t process credit cards. Furthermore, using credit cards at your business functions as an instant line of credit and means less hassle and paperwork for your business. This can cut down on lengthy credit approval processes. Also, there are additional types of funding available for businesses who process credit card transactions as opposed to those who don’t.

Having a secured future is the ultimate goal of any individual for their family and for themselves as well. But there is only one thing that can make you achieve this kind of success that almost every person in the world compete for is money.

To have a successful life, there two basic ways. One is to find a job and second through a small business. With a simple job, you can provide your family with their basic need as long as its wage can bear. On the other hand, the cost of living changes from time to time that some people having a job still begins a small business. If the amount needed is already at hand, then starting the business will easier. There are some who wants to have one as well and can be given with a business loan.

A business finance can is one way to help you with your business. For starters goods and materials should be prepared to manufacture the products and provide the services your company wants to offer. If the client’s expectations are met, your small business will surely expand. The financial needs can be assisted by your business loan.

Lending companies are everywhere and have different proposals that fit your business. All you have to do is check each lending company and choose the best among them. But be sure that you are firm with your decision.

If you know when is the best time to take risk for your business, your business loan will definitely improve. But as soon as you receive your business finance, you should know what your priorities are to evade bad investments.

Taking care of your business is the most important part and should not be taken for granted. If there are consistencies, you must be aware of it and take charge of it personally. Once your business is growing, this will also give you a chance to apply for another business loan.

If you are open to business finance, and then you will realize this is not a debt but an opportunity to have an easier life. This can even help you expense the daily needs and desires of yourself and your family at the same time.

You know that this is your chance, so find a business loan, start a small business and allow yourself and your family a better future.

The idea of eliminating business gifts from your yearly agenda is like playing with fire.

We’ll say that one more time: you’re playing with fire if you decide not to spend on business gifts. It’s the same thought expressed in different words.

Think of business gifts as grease money. It’s the proverbial “you scratch my back, I’ll scratch yours”. In this particular context, the notion of grease money does not have to take on a negative tone. Just as you would nurture a loving relationship with a surprise gift every now and then, you’d ensure that your customers are kept happy by humble gestures of acknowledgement from your company. To survive in a competitive business environment, business gifts are an added tool to help you navigate the unsteady waters of any business relationship or alliance. And in some cases, they can even help you expand your business.

Here’s why:

What Goes Around Comes Around

First, we firmly believe in what one mensch said to us one day: “you gotta spend money to make money.” This is a beautiful approach because it echoes the principle that what goes around comes around. To give an example, if you give a business gift to an old customer, that old customer could mean one, two, or three new customers. Picture this scene:

Person A: That’s a curious-looking memorabilia. Who gave it you?
Person B: XYZ Enterprises. I’m an old customer. They send me these gifts from time to time.
Person A: What do they do?
Person B: They sell software for graphic designers.
Person A: Hey, my graphic designers are complaining that their software is too antiquated. They want better tools to produce better layout. Maybe your guy can clue me into what’s hot in the industry in terms of graphic design?
Person B: Sure thing. Here’s his business card. Or do you want me to ask him to call you?
Person A: Nah, I’ll call him right away. My need is urgent.

That’s how it works. Before you know it, your company name has been passed around and before you know it, new customers are calling you.

Word of mouth, in our opinion, is the most powerful advertising medium there is. It’s reliable and it acts like a live, honest-to-goodness testimonial, not a canned testimonial that was penned by a tired and weary copywriter.

Giving Back to the Community

Another way of expanding your business with business gifts is to sponsor a community event. During the event, you give last year’s business gifts to every man, woman and child you meet. You’re not only being generous, you’re also advertising – again. So if a relative or a friend of one of those people happens to see your business gift with your company name and telephone number, that person may keep your contact details for future use – or else recommend you to another friend.

By giving, you start a chain. You hope the links in that chain don’t come apart. Better yet, you hope the chain grows longer!

You run a small home-based business and you are happy with the revenue which you earn. Unfortunately, all this can go away in just a few seconds due to a natural disaster or a claim from a client. That is why you require protection. The best way to get it is to buy business insurance. Use some practical tips on how to shield your venture in the most effective way.

Cover all of your business assets.

The equipment and materials which you use for commercial purposes are not covered by your home insurance. You need to protect them with business insurance. Prepare a list of all assets which you use from your computer to the furniture. It is best if you get a comprehensive policy which covers your assets in case of a wide range of perils. If you have a limited budget in the beginning, however, you can protect them against the most common perils like theft and fire and then upgrade your cover.

Protect your revenue.

If your equipment gets damaged due to a peril, you will get compensated for its loss. However, you will still not be able to work and earn revenue for a certain period of time. In this situation, you may not have sufficient cash to pay any creditors, leasers and suppliers. You may lose some clients as well. If you have business interruption cover, your cash flow will be protected. The insurer will help you with making all payments and with the recovery of your commercial operations. For example, you can get money for renting equipment which will enable you to keep working until you can buy new one.

Consider getting liability insurance.

If you have clients visiting your home office or you work on the premises of clients regularly or from time to time, you will benefit from getting public liability cover as part of your business insurance package. If you produce tangible products, you will need product liability cover. If your company offers services like most home-based businesses, you should definitely get protected with indemnity insurance also known as professional liability cover.

Insure any business vehicles in an appropriate way.

If you use your private car or any other privately owned vehicle for commercial purposes, you need to get commercial auto cover. This is because an individual policy will not be valid for such vehicles. It is best if you get a comprehensive commercial auto cover which protects your vehicle against collision damage and various perils as well.

Finally, you should compare quotes from different companies to pick the best business insurance policy for you.